Small business loan approval percentages at small banks (less than $10 million in assets) continued to rise from 21.4% in August to 21.5% in September, while Big bank approvals (more than $10 million in assets) fell from 15.1% in August to 14.9% in September, according to Biz2Credit’s Small Business Lending Index.
Approval percentages also improved slightly among three categories of non-bank lenders.
- Institutional lenders approved 26% of loan applications in September, down from 25.9% in August. Approvals in this lending category have steadily increased in 2022.
- Alternative lender approval rates fell from 27.3% in August to 27.5% in September.
- Credit unions posted their first increase in approval ratings for 2022, from 20.3% in August to 20.4% in September.
“Small business loan approval percentages are relatively stagnant,” said Rohit Arora, CEO of Biz2Credit. “With ever-increasing interest rates, times are tough for small businesses looking for capital for growth.
“Small businesses still face many challenges related to COVID restrictions, a tight labor market and inflation. It is important that they have access to capital to survive. This is especially important for smaller businesses, especially women-owned and minority-owned businesses. »
Biz2Credit analyzed loan applications from businesses that had been in business for more than two years with credit scores above 680 for the index. The results are based on primary data submitted by more than 1,000 small business owners who applied for funding on Biz2Credit’s platform.
